The bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual merit rating based on factors like idea generation, quality, reliability, dependability and output (Milgram & Roberts 1995).Tags: Welding Business PlanDefine Outlining EssayEssay N FarmerEssay On Beethoven'S LifeEducational Psychology Topics For A Research PaperPro Cloning EssaysQuaid E Azam Mohammad Ali Jinnah Essay In EnglishElements Of Creative WritingSample Cleaning Business PlanLiterature Review On Change Management
The discussion between promoters of best practice and best fit approaches has sparked widespread controversy in the human resource management (HRM) area.
The topic has gained much scholarly attention because it not only addresses a theoretical controversy but also possesses a high degree of practical managerial significance.
The best practice approach claims that certain bundles of HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman and Wilkinson 2009).
Best practice models imply a close connection between HR practices and organizational performance and are often associated with high commitment management (Paauwe & Boselie 2003).
The essay has the aim to analyse best practice and best fit approaches in HRM of a multinational enterprise.
The reader receives insight into Lincoln Electric's organization through a case-study analysis of practical HR approaches serving as a basis for developing practical managerial implications in the last part of the paper.
In the US, Lincoln employs a highly compensated piece-work system which is linked to individual employee performance based on a multitude of work-related factors (Bjorkman & Galunic 2003).
The reward system is able to motivate employees for achieving commitment through a remuneration which is at the top of its industry (Bjorkman & Galunic 2003).
Examples are a sophisticated trainee program for sales and engineering trainees, constant vocational trainings for experienced workers and regular work certification programs (Bjorkman & Galunic 2003).
These actions aim at supporting and maintaining the superior efficiency objectives creating core competences compared to industry rivals and a competitive advantage.